Hedge fund losses drive Manhattan real estate slowdown
By Lawrence Delevingne
Tue Nov 8, 2011
Large deals by Man Group and Peter Muller’s PDT Partners have been the exception in recent months.
The number of Manhattan real estate deals involving hedge funds
fell significantly in October from the previous year, with the
industry’s recent losses leading brokers to worry
that 2011 could mark the first sizeable drop in activity since
the financial crisis.
||The new home of Man Group: 452 Fifth
The full affect of
poor performance in the third quarter has yet to be felt,
but real estate professionals say hedge funds are signing fewer
of the large and long-term leases, mostly in midtown Manhattan,
that fuel the market for high-end real estate, and that the
situation could worsen by yearend.
There were just 17 deals in October, according to data from
CB Richard Ellis, compared with 38 in September and 30 in
October 2010. Many of the recent deals involved smaller funds
and office sizes; many weren’t hedge funds.
October was the lowest month for financial...
ISSN: 2151-1845 / CDC10004H
Take a trial today and access
- Performance news, fund launches, regulation changes and people moves
- Profiles of fund managers, investors and distributors
- Live league tables
- Investor mandates
Start your subscription today!
- Access our news and performance data online from anywhere
- Receive weekly emails with the latest news and performance data
- Free copies of the bi-annual Global Review inc. the Billion Dollar Club
- 24/7 online support
- Dedicated account manager